Q.As a Manager, explain first two levels of the new concept of Social responsibility.
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Significance of Principles — Fulfilling Social Responsibility
A company exists inside a society, not apart from it. It draws labour, land, capital and
customers from that society, and — the textbook argues — it owes that society something
back beyond just a paycheque for its workers and a product for its buyers. That "owing
something back" is what the sixth point in the significance of management principles is
about: fulfilling social responsibility.
The precise textbook point
The NCERT chapter lists "fulfilling social responsibility" as one of the ways principles
of management matter in practice. Public awareness of business conduct has grown, and —
especially for limited companies — society now expects more than profit-making. Management
theory and its principles have evolved in response to this expectation. Crucially, the
textbook notes that even an old principle can take on a new meaning as expectations
change: the principle of equity (fair treatment) used to be read narrowly, as fair
wages. Today it stretches to cover value delivered to the customer, care for the
environment, and fair dealing with business associates — the same word, a wider
obligation.
The two textbook examples
The chapter grounds this abstract point in two real Indian organisations.
BHEL (Bharat Heavy Electricals Limited). As a Public Sector Undertaking, BHEL did not
stop at building electrical equipment — it developed an entire township, Ranipur, near
Hardwar (Uttarakhand), for its workforce and their families. That is social responsibility
applied through the equity principle in its widened sense: not just fair wages, but a
liveable community built around the workplace.
Shri Mahila Griha Udyog Lijjat Papad. This is the more striking example, and the
textbook devotes a full box to it. Started with a loan of just ₹80 in 1959, it grew into an
organisation worth around ₹650 crore, run by and for its 45,000+ women members
("papad-rolling sisters"). Its own account describes itself as combining three concepts —
business, family, and devotion — and treats the institution as more than a
workplace: a place where members support each other the way a family would, while still
running a genuinely profitable, export-earning business (its papads reach the UK, USA, the
Middle East, Singapore, Japan and more). It even funds scholarships for members' children.
The textbook's own heading for the box makes the point explicit: "Combining business with social responsibility."
Both examples share the same shape: a real business decision (building housing; running
a papad-making enterprise) that ALSO discharges an obligation to people beyond the firm's
own shareholders — employees' families in BHEL's case, tens of thousands of women given
a livelihood and independence in Lijjat's case. That is exactly what "fulfilling social …
The modern (new) concept of social responsibility holds that management owes duties to several interest groups; the first two of these levels relate to the groups closest to the enterprise — its owners and its employees. …
Under the modern concept of social responsibility, the first two levels are responsibility towards owners (protecting their capital and giving a fair return) and towards employees (fair wages, safe conditions, security and growth).
The new concept of social responsibility recognises that a business is answerable not only to its owners but to many groups. These responsibilities can be seen in widening levels; the first two are towards the groups most directly connected with the enterprise:
1. Responsibility towards owners / shareholders: The owners supply the capital and bear the risk, so management must protect their investment, use resources efficiently, work for the growth and safety of the business, and provide a fair and regular return (dividend) along with true information about the firm's affairs.
…
- CBSE 2025Set ANNUAL1 markMCQQ.In the nature of social responsibility of management applies the rule of (A) 'Buyer beware' (B) 'Seller beware' (C) Both (A) and (B) (D) None of these
›Reveal solutionSolution
Under the modern notion of social responsibility of management, the rule of 'buyer beware' (caveat emptor) gives way to 'seller beware' (caveat venditor) — the seller is responsible for the quality, safety and honest dealing of what is sold.
…
- CBSE 2025Set ANNUAL1 markQ.The principles of management are guidelines to action, How?
›Reveal solutionSolution
Management principles are guidelines to action because they give managers tested direction on how to act in a given situation.
Principles of management are general, tested statements of cause and effect. When a manager faces a real situation, these principles supply a ready guideline indicating what ought to be done, so the manager need not depend on costly trial-and-error. For example, the principle of 'unity of command' guides a manager to ensure each subordinate reports to only one boss. In …
- CBSE 2024Set ANNUAL1 markQ.Read the following passage carefully and answer the questions given below- Rita did a course in fashion designing after graduation. She opened a showroom in Delhi after completing the course. She employed eight employees in the showroom. For greater productivity, she divided work into smaller part and every employee is trained for the work assigned to him. Sales staff were allowed to give 10% discount to customers and other buyers, Rita retained the authority to decide on any discount beyond this. In early days of the business, Rita asked employees to work extra hours. In return, promised to give them special incentive within a year. She gave cash bonus to employees when the business did well. However, she is inclined towards women employees in resolving disputes among employees.(b) Which principle of management is being violated by Rita?
›Reveal solutionSolution
Rita's favouritism towards women employees while resolving staff disputes violates Fayol's principle of Equity.
Fayol's principle of Equity states that managers should be fair and impartial when dealing with subordinates — similar situations should be handled similarly, and no employee should be favoured or discriminated against on grounds unrelated to their actual performance or the merits of the issue at hand, such as gender, personal liking, or background. In the passage, Rita is shown to be inclined towards women employees specifically when resolving disputes among staff, which means similarly placed male and female employees in a dispute are not being treated on equal, fact-based terms — this is precisely the kind of partiality that the principle of Equity is meant to prevent. Over time, such …
- CBSE 2022Set MARCH1 markMCQQ.Who has introduced the principles of Trusteeship?(a) Jawaharlal Nehru(b) Subhash Chandra Bose(c) Indira Gandhi(d) Gandhiji
›Reveal solutionSolution
The correct option is (d) Gandhiji. The Trusteeship principle is a Gandhian concept of using wealth for social good.
- (a) Jawaharlal Nehru, (b) Subhash Chandra Bose and (c) Indira Gandhi are national leaders but not associated with Trusteeship. …
- CBSE 2022Set ANNUAL1 markQ.Management principles provide the managers with useful insights into real world situations. Is this statement true or false?
›Reveal solutionSolution
True — this is exactly the significance of management principles: they distil years of managerial experience into usable guidance for real-world decisions.
Principles of management (such as Fayol's fourteen principles or Taylor's scientific-management techniques) were developed by observing what actually worked and what failed across many real organisations. Because of this, they give a manager:
- a ready reference to understand and predict the likely outcome of a decision before taking it,
- a way to increase efficiency by avoiding past mistakes,
- training material for new managers to build managerial skill faster, and
- a benchmark to fulfil social obligations responsibly. …
- CBSE 2022Set ANNUAL1 markMCQQ.According to Henry Fayol the principles of management are-(a) 8(b) 10(c) 12(d) 14(a) 8(b) 10(c) 12(d) 14
›Reveal solutionSolution
The correct option is 14.
Henri Fayol is regarded as the father of general management theory. Based on his own managerial experience, he formulated fourteen principles — division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralisation and decentralisation, scalar chain, order, equity, stab …
- CBSE 2022Set ANNUAL1 markQ.Why have principles of management gained importance these days?
›Reveal solutionSolution
Principles of management act as a reliable guide for managers facing increasingly large, complex and competitive organisations — hence their growing importance in modern times.
Reasons for their growing importance:
- Growing size and complexity of organisations — large enterprises with many departments and employees need systematic guidelines rather than trial-and-error decision-making.
- Increasing competition — scientific principles help managers use resources optimally and stay competitive.
- Need for scientific decision-making — principles, derived from experience and experimentation, reduce guesswork and improve the quality of decisions.
- Efficient use of resources — principles guide managers towards minimum wastage of time, money, material and effort.
- Changing technology and environment — principles (though not rigid laws) help managers adapt and respond appropriately to constant change.
- Fulfilling social responsibility — principles (e.g. Fayol's "Equity" and "Subordination of individual interest to general interest") remind managers to balance profit motive with obligations to employees, customers and society. …
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